India’s primary steel mills have raised hot-rolled coil (HRC) and rebar prices by Rs1,300-1,800/mt ($17-25/mt) for November deliveries as demand has increased from automotive, engineering, construction and shipbuilding, among others, as per Davis Index sources. Global prices are also witnessing an uptrend.
JSW Steel raised HRC prices by Rs1,250/mt ($16.8/mt) and rebar by Rs1,750/mt ($23.52/mt). Jindal Steel and Power Limited (JSPL) has raised rebar prices by Rs1,500/mt ($20.16/mt). Other state-owned mills like Sail and RINL did not announce revised prices till the time of publishing the article.
After the revision, rebar prices are hovering around Rs38,000/mt, HRC prices at 41,000/mt, plates at Rs40,500/mt and wire rod at Rs44000/mt. All prices are ex-factory prices in East India. HRC export prices for China is in the range of $515-520/mt FoB China.
Since mid-July, Indian primary mills have raised prices by Rs8,500-9,000/mt till now on the back of growing domestic consumption, mostly from the automotive sector.
International iron prices, however, have softened since early-October after reaching $124/mt cfr China, and are now at $117-118/mt cfr China. Similarly, international coking coal price has also reduced from $120/mt to $105/mt in the last one month. This will increase margin for the mills and is expected to reflect in the upcoming quarter results.